 added calculation, we're going to have the actual hours times the standard rate and then we're going to get this number here and we're going to compare this number and this number and this number and this number. So first we'll compare these two. We're doing this calculation here, actual hours times the actual rate, and we're comparing that times the actual hours times the standard rate. And note what the difference is, is the rate in this case. So the difference is the rate. So if we subtract those two out, we get the 66 to 50. That's the difference due to us having a lower rate in this case. Therefore, it's a favorable difference. So I would kind of think through it when you're trying to think if it's favorable or unfavorable. Well, the thing that's different here is the rate. And we budgeted the rate to be higher than what actually happened. And that's a good thing. We had a lower rate than we thought. And then if we compare this one, we're comparing this side to this side. And what's going to be the thing that's different here? And that's going to be the hours. So we have the hours, the standard hours and the actual hours differ. And that's going to be the efficiency variance. How good were we with the use of the hours? We use more or less hours. In this case, we have the 70,000. And it's a favorable difference as well. Because if we look at that, we say the standard hours were the 270. That's what we thought was going to happen. The actual hours was 265. We actually have less hours than we budgeted to have. So both favorable differences. And if we add those two up, then we get back to this 365-250, which matches the 365-250 up there. So remember, if we just, if we just matched out what happened on the flexible budget, and what happens in actual, in terms of the labor, we would get this number. And now we're breaking it out into its components, the rate variance and the efficiency variance. So now we're going to calculate this same rate variance and efficiency variance in a formula, which will be a slightly quicker. So we're going to have a few less steps in the formula. So first we're going to start off with the rate variance. And we're just taking a look at these two calculations here that we compared before. And what we have here is the difference being the rate, so the actual rate and the standard rate. So if we put that in a formula, we could first say that we have the actual rate 1375. We've got less or minus the standard rate of 14. That gives us that difference of the 25. And then we're going to multiply that times the actual hours. And that will give us the rate variance. So it's a bit quicker calculation. We get to the rate variance for the 66-250 from the formula. When you want to see if it's favorable or unfavorable, again, you want to kind of take a look at the actual rate versus the standard rate. The thing that is changing, the actual being less than the standard, what we budgeted, that's good. Therefore, it's a favorable difference.